Interest against FD
This query is : Resolved
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R.KANDASUBRAMANIAN
(Querist)
21 June 2021
Experts
one is a Director of the company and he has availed loan agaisnt fixed deposits with Bank and has given loan for one year period to a company for its working capital purposes in which he is a director of the company and term of loan includes fixed interest rate and also 1% share in Net Profit
a. in the books of the company , the loan amount is treated as Short Tem or Current liability
b. whether the director can claim interest paid on OD against FD as expenses in PL a/c since used for business purposes
experts please clarrify
one is a Director of the company and he has availed loan agaisnt fixed deposits with Bank and has given loan for one year period to a company for its working capital purposes in which he is a director of the company and term of loan includes fixed interest rate and also 1% share in Net Profit
a. in the books of the company , the loan amount is treated as Short Tem or Current liability
b. whether the director can claim interest paid on OD against FD as expenses in PL a/c since used for business purposes
experts please clarrify
CA R SEETHARAMAN
(Expert)
21 June 2021
a) Show it as short term loan.
b) yes, it's allowed to claim interest on od against deposit.
b) yes, it's allowed to claim interest on od against deposit.
R.KANDASUBRAMANIAN
(Querist)
21 June 2021
Thanks CA seetharaman Sir, thanks again
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